Why you should buy caring – at 05/23/2022 14:38

Eric Galigu

Gucci, Kering's flagship brand.  (Photo credit: Flickr)

Gucci, Kering’s flagship brand. (Photo credit: Flickr)

Kering is a large French luxury group that brings together prestigious brands such as: Gucci, Saint Laurent, Botega Veneta, Balenciaga, Alexander McQueen, Boucheron, Pomelato, Dodo, Kilin, Ulysses Nardin. Glasses ..

Kering Hall is a strongly international group: in fiscal year 2021, it achieved sales of 17.6 billion euros, which was divided between Western Europe (22.9%), Japan (6%), Asia-Pacific (37.9%) and North America (26.6%). .
Kering’s share price has suffered an impressive fall from last August’s high point (€ 788), as it is currently trading at 463 euros. So in 9 months he lost more than 40% … This dung beetle treatment seems especially extra to us.

Basic feeling: favorable

Indeed, the predictions of financial analysts during this period were significantly revised upwards, as shown in the following graph.

Source: Factset and Valuquent Expertise

Source: Factset and Valuquent Expertise

At the end of such a fall, PER necessarily dropped significantly, and today found at 13.2, the lowest for 10 years.

Source: Factset and Valuquent Expertise

Source: Factset and Valuquent Expertise

Compared to the general index, it has lost the normal premium by several points. The community of financial analysts remains highly favorable for Kering shares, as the target price remains around 750; The probability of the current price is therefore the highest ever, since it has exceeded 60%!

Source: Factset and Valuquent Expertise

Source: Factset and Valuquent Expertise

Digital Feelings: Favorable

In addition, Kering’s digital sentiment is particularly high: it’s just so fast, and it’s the highest ever!

Sources: SESAMm and Valquant Expertyse

Sources: SESAMm and Valquant Expertyse

Just as digital activity has grown exponentially in parallel, so has the development of digital sensibility.

Sources: SESAMm and Valquant Expertyse

Sources: SESAMm and Valquant Expertyse

In this context of favorable digital reputation, prices are more likely to rise.

Towards the end of the decline?

The bear market is serious, but we consider that from a technical point of view, the price of Kering is close to a particularly important major support, about € 450. Based on this, the share price may rise again …

Source: Factset and Valuquent Expertise

Source: Factset and Valuquent Expertise

Finally, we consider that the recent drop is really much higher than the large comparable LVMH.

Source: Factset and Valuquent Expertise

Source: Factset and Valuquent Expertise

So we are buying at Kering.


This is the method of monthly column

We consider that one part lives three lives. A basic life, a digital life and a market life.
Basic life coincides with the development of the company in real life. It is measured by the usual financial and accounting metrics: turnover, results and balance sheet ratio which shows whether the company is in good financial health. We constantly monitor fundamental sentiment, which is managed by financial analysts and includes earnings forecasts and financial data for equities in general.

Market life coincides with stock price growth. Classically, the life of this stock market is characterized by the following trends: bullish or bearish, depending on the evolution of the share price and the volume of transactions. We constantly monitor market sentiment, which is driven by investors and uses simple trend-following indicators.
The company’s digital life coincides with its digital reputation, which can be continually measured by explaining content on the web. Thus, in discussions, forums or news sites, the name of the company is mentioned and the relevant content is referred to as positive or negative. We continually monitor digital sentiments using alternative data provided by our partner SESAMm (the amount of activity and digital perceptions for each stock).

Digital Reputation: A New Stock-Picking Index

Valquant Expertyse is an independent economic and financial analysis and research organization.
SESAMm is one of the leading companies in big data and artificial intelligence solutions applied in asset management.
Swiss Life Gestion Privée A resource manager who practices non-index suffix management
A partnership between the three companies allowed Valquant Expertyse to advise the ESG Valeuroselect Fund (ISIN: FR0010734046), managed by Swiss Life Private Management. The fund management process uses digital indicators updated by SESAMm and is referenced by Valquant Expertyse. This is an “integrated analysis” method applied by the management team of Swiss Life Private Wealth.

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